MUMBAI: Fuel prices in Mumbai are now the highest in the country. Petrol price was hiked by Rs 1.79 on Sunday to Rs 81.31 per litre and diesel by over a rupee to Rs 62.60.

This was the second hike in just two days, the last one being a 96-paise and 62-paise increase on Friday. "The price has been revised in Mumbai as part of a state specific cost recovery," said a senior oil company official. Said another association member Venkat Rao, "It is a huge additional burden on our customers and will also affect our sales. While petrol rate per litre was increased from Rs 79.52 to Rs 81.31 from Sunday, the price of diesel went up from Rs 61.42 to Rs 62.60. The increase in diesel prices may have an impact on transportation cost of fruits, vegetables and other essential commodities and this will also lead to further inflation, said consumer activist Sunil Mone.

The diesel price hike may also have an impact on the fares of state transport buses, sources said. Ashwin Rao, who regularly drives to work, said he would now prefer to keep his petrol car at home. "It is so frustrating. We don't have a proper public transport system such as AC buses or BRTS. The government should look at alternatives before announcing fuel price hikes or planning hefty taxes for cars," he added.